* Bullion off lows as dollar down after consumer sentiment
* Gold market looks overly bullish after recent rally
* Focus on G-20 countries summit
(Recasts, updates prices, market activity; adds second byline,
dateline, previously LONDON)
By Frank Tang and Rebekah Curtis
NEW YORK/LONDON, Sept 25 (Reuters) - Gold ended lower on
Friday on slow physical demand for bullion and investor
frustration with the precious metal's inability to sustain a
price of $1,020 an ounce hit this week.
After sinking to the lowest level in two weeks, gold
bounced up in late trade to finish with slight losses as the
dollar turned weaker when data showed an improvement in U.S.
consumer sentiment.
Investors disappointed with technical resistance above
$1,020 an ounce have been selling gold over the last few days.
A lack of physical demand at near-record-high prices also led
to weakness, traders said
Gold's relationship with the dollar over the past few weeks
has become stronger. A lower dollar makes commodities cheaper
for holders of other currencies.
"The currency market seems to have taken encouragement from
the consumer sentiment data... (which) suggests that Mr and Mrs
America are getting ready to return to the malls after an
extended leave of absence," said Citigroup analyst David
Thurtell.
Spot gold <XAU=> was at $989.15 an ounce at 4:02 p.m. EDT
(2002 GMT), down from $993.75 late in New York on Thursday. It
sank as low as $984.70 an ounce, its lowest since Sept. 10.
U.S. December gold futures <GCZ9> settled down $7.30 at
$991.60 an ounce on the COMEX division of the New York
Mercantile Exchange.
Gold recovered its poise as the dollar fell after the
Reuters/University of Michigan index of consumer sentiment rose
in September. [] []
Bullion rallied to an eighteen month-high of $1,023.85 an
ounce last week, within a reach of its record high of $1,030.80
an ounce struck in March 2008.
"The market's been looking heavy for a while now ... The
dollar is generally a bit firmer," said Simon Weeks, director
of precious metals at Bank of Nova Scotia.
Earlier the dollar rose after data showed orders for U.S.
durable goods such as computers and appliances fell 2.4 percent
in August, confounding expectations for a modest increase.
The data added to lingering concern about the health of the
U.S. economy and caused investors to pare back positions in
currencies such as the euro.
G-20 MEETING IN FOCUS
Group of 20 leaders, holding a two-day meeting in
Pittsburgh, pledged to keep emergency economic supports in
place until a durable recovery is secured, and to work together
when the time comes to remove them. []
This, analysts say, suggests low interest rates for longer,
which means expect further dollar weakness ahead.
"Expectations for ongoing dollar weakness are likely to
generate further investor buying in gold on a worldwide basis,"
said John Meyer, analyst at Fairfax investment bank.
Silver <XAG=> was at $16.02 an ounce from $16.18, platinum
<XPT=> at $1,271 from $1,297.5 and palladium <XPD=> was at
$289.50 from $291.5, its late quote on Thursday in New York.
Close Change Pct 2008 YTD
Chg Close % Chg
US gold <GCZ9> 991.60 -7.3 -0.7 884.3 12.1
US silver <SIZ9> 16.060 -0.235 -1.4 11.295 42.2
US platinum <PLV9> 1284.60 -23.90 -1.8 941.50 36.4
US palladium <PAZ9> 294.90 -3.00 -1.0 188.70 56.3
Prices at 4:26 p.m. EDT (2026 GMT)
Gold <XAU=> 990.60 -3.15 -0.3 878.20 12.8
Silver <XAG=> 16.02 -0.16 -1.0 11.30 41.8
Platinum <XPT=> 1273.00 -24.50 -1.9 924.50 37.7
Palladium <XPD=> 289.50 -2.000 -0.7 184.50 56.9
Gold Fix <XAUFIX=> 991.50 -5.50 -0.6 836.50 18.5
Silver Fix <XAGFIX=> 16.20 -56.00 -3.3 14.76 9.8
Platinum Fix <XPTFIX=> 1281.00 14.00 1.1 1529 -16.2
Palladium Fix<XPDFIX=> 293.00 2.00 0.7 365.0 -19.7
(Additional reporting by Humeyra Pamuk and Pratima Desai in
London; Editing by David Gregorio)
